City Presents First Look at FY12-13 Budget

On Monday evening, City of St. Charles Finance Director Chris Minick presented a status report on the city's FY11-12 budget and a preliminary look at the city's FY12-13 budget.

The city is projecting a $369,000 surplus for FY11-12 that is primarily due to the effectiveness of robust cost containment efforts. In addition, approximately $250,000 is expected to be saved due to the mild winter and lower than anticipated costs for snow and ice control.

The FY12-13 budget represents a solid, sustainable financial plan that:

1. Includes no new taxes or fees and no increases in taxes or fees
2. Restores some programs/services that were suspended during the worst of the economic downturn
3. Completes long-awaited and much-anticipated capital projects including the Red Gate Bridge and East Main Street Reconstruction

The city's efforts during the past few years to achieve financial sustainability are paying dividends - the General Fund is strong. From an operations standpoint, the city is expected to enjoy surpluses for the current year, FY12-13, and FY13-14. Unfortunately, the economic downturn has resulted in underperformance of several of the city's TIF districts and that will require the city to provide subsidies to repay bonds issued to fund improvements. Even with this subsidy, General Fund reserve (the city's "savings account") is expected to be 32% of expenditures at the end of the 5-year forecast - well in excess of the city's target of 25%.

The FY12-13 budget includes:

• restoring the popular "Spring Clean-Up" program. This program allows St. Charles residents to dispose of unwanted items on a 1-time basis. While many residents believe the program is free, the actual cost to taxpayers will be approximately $100,000. Preliminary plans are to offer the program in May, with 1 collection date for residents east of the river and 1 collection date for residents west of the river.
• restoring the façade improvement program at a cost of $40,000. This program is a matching grant program for downtown business owners to improve the exterior of their buildings, maintain the character of our historic downtown, and enhance the overall appearance of the community. Funds are administered by the city's Community Development Department. You can get more information here.

Capital projects to be undertaken in FY12-13 include the construction of the Red Gate Bridge and the reconstruction of East Main Street from 7th Avenue to the city's eastern boundary.

Construction of the Red Gate Bridge commenced last summer and is slated for completion by late 2012. Construction on East Main Street also started in 2011 and is expected to last until Fall, 2013.

The city's budget is slated to be presented at a public hearing on Monday, April 2nd. It is scheduled for adoption by the City Council on Monday, April 16th.

For additional information, please view the presentation materials here.